© C
OP
YR
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INTRODUCTION
TO BANKABLE PROJECTS
April 2018
Living Planet index
83%DECLINE
$1t
REQUIREDINVESTMENT
~$1T~$0.3t
CURRENT INVESTMENT
FINANCE GAP
Water Funding Gap
The World Economic Forum’s annual risk report ranks water crises as #1 global risk in terms of impact.
Financing.
Current source of financing
Global ODA
US Foundation Philanthropy
< $0
.2T
< $1T
Major Global Investor Pools
Global ODA < $0,2T
Sovereign Wealth Funds
$42TGlobal Public Debt
$76TGlobal Equity Market
$91TPrivate Sector Debt
$4.2TPrivate Capital
< $1TUS Foundation Philanthropy
$6,6T
Financiers
We want to invest in sustainable projects, but we have difficulties identifying sufficient bankable projects
Citi ‘Water Worries: Climatic Consequences’
Credit Suisse ‘Water: The Paramount Megatrend of our Time’
Citi ‘The Growing Impact of Water Scarcity on Mining’
HSBC ‘GDP will be ‘severely hampered by water scarcity’
‘Watching water: A guide to evaluating risks in a thirsty world’
Goldman Sachs
‘Water could be a constraint on growth’
Morgan Stanley
‘Water: The Perfect Storm’
Standard Chartered
‘Water – The Real Liquidity Crisis’
Merrill Lynch ‘Water scarcity a bigger problem than assumed’
JP Morgan
Finance and Economics – What the Banks are Saying?
A Bankable Project is any project that:
Has a positive environmental impact
Generates a positive return for financial stakeholders*
*In many cases it will use blended finance
1
2
Fu
nd
s
Ye
ar 1
Ye
ar 0
Ye
ar 3
Ye
ar 2
Ye
ar 5
Ye
ar 4
GRANT BASED
PROJECTS• WWF
• Grants
• Donors
• Corporates
• Development Banks
Leveraging Capital
1x
Fu
nd
s
Ye
ar 1
Ye
ar 0
Ye
ar 3
Ye
ar 2
Ye
ar 5
Ye
ar 4
SEED FUNDING• WWF
• Grants
• Donors
• Corporates
• Development Banks
Leveraging Capital
1x
TO FUND:• Pilot projects
• Feasibility studies
Fu
nd
s
Ye
ar 1
Ye
ar 0
Ye
ar 3
Ye
ar 2
Ye
ar 5
Ye
ar 4
SEED FUNDING• WWF
• Grants
• Donors
• Corporates
• Development Banks
INVESTMENT• Banks
• Development Banks
• Investors
• HNWIs
Leveraging Capital
1x
~20x
Fu
nd
s
Ye
ar 1
Ye
ar 0
Ye
ar 3
Ye
ar 2
Ye
ar 5
Ye
ar 4
SEED FUNDING• WWF
• Grants
• Donors
• Corporates
• Development Banks
INVESTMENT• Banks
• Development Banks
• Investors
• HNWIs
REPLICATE AND SCALE• Retail Investors
• Institutional Banks
• HNWIs
Leveraging Capital
1x
~20x
~50-100x
Fu
nd
s
Ye
ar 1
Ye
ar 0
Ye
ar 3
Ye
ar 2
Ye
ar 5
Ye
ar 4
SEED FUNDING• WWF
• Grants
• Donors
• Corporates
• Development Banks
INVESTMENT• Banks
• Development Banks
• Investors
• HNWIs
REPLICATE AND
SCALE• Retail Investors
• Institutional Banks
• HNWIs
1x
~20x
~50-100x
Leveraging Capital
DRIVE
IMPLEMENTATION
Fu
nd
s
Ye
ar 1
Ye
ar 0
Ye
ar 3
Ye
ar 2
Ye
ar 5
Ye
ar 4
SEED FUNDING• WWF
• Grants
• Donors
• Corporates
• Development Banks
INVESTMENT• Banks
• Development Banks
• Investors
• HNWIs
REPLICATE AND
SCALE• Retail Investors
• Institutional Banks
• HNWIs
Leveraging Capital
DRIVE
IMPLEMENTATION1x
~20x
~50-100xIMPACT
1x
~20x
~50-100x
Fu
nd
s
Ye
ar 1
Ye
ar 0
Ye
ar 3
Ye
ar 2
Ye
ar 5
Ye
ar 4
SEED FUNDING• WWF
• Grants
• Donors
• Corporates
• Development Banks
INVESTMENT• Banks
• Development Banks
• Investors
• HNWIs
REPLICATE AND
SCALE• Retail Investors
• Institutional Banks
• HNWIs
Leveraging Capital
DRIVE
IMPLEMENTATION
WWF
INVOLVEMENT
IMPACT
Scale.
1 Landscape Selected
1 Landscape Selected
2 Stakeholders Engaged
• Stakeholder Mapping
• Establish a multi-
stakeholder platform
• Water Stewardship Kick off
1
2
Landscape Selected
Stakeholders Engaged
• Water Risk Filter
• Existing and New Reports
• Stakeholders Onboarded
3 Risks and Pressures Identified
1
2
Landscape Selected
Stakeholders Engaged
3 Risks and Pressures Identified
• Collaborative planning
with stakeholders
• Grant Projects Identified
4 Grant-Based Projects
1
2
Landscape Selected
Stakeholders Engaged
3 Risks and Pressures Identified
4 Grant-Based Projects
• Collaborative planning with stakeholders
• Projects from Corporate Partners
• Projects from Entrepreneurs
• Projects from WWF Offices
5 Bankable Projects
1
2
Landscape Selected
Stakeholders Engaged
3 Risks and Pressures Identified
4 Grant-Based Projects
5 Bankable Projects
• Impact and Learning Methodology
• Environmental & Social Safeguards
• WWF, Regulators and Corporate needs
met
6 Monitoring and Learning
1
2
Landscape Selected
Stakeholders Engaged
3 Risks and Pressures Identified
4 Grant-Based Projects
5 Bankable Projects
6 Monitoring and Learning
7 Landscape Derisked & Protected
Landscape Example
KAFUE FLATS
© Martin Harvey / WWF
Kafue Flats(Zambia)
Local populations
Lusaka (Capital)Population
2.5m
KafuePopulation
200kMazabuka
Population
200kNamwalaPopulation
80k
Itezhi-tezhiPopulation
45k
Foundation created by WWF with DGIS
Landscape Risks and Pressures
Dam
CattleFisheries Sugar
Industrial
Hydro
Population & Agriculture
Constellation of different projects
Restore National parkRestore area to allow for more biodiversity and expand tourism facilities to generate revenues
$5m
Irrigation
improvementImprove irrigation system and regulate water allocation and farm expansion
$10m
Water treatment
systemReduce water pollution and treat water from cities
$50m
Fish processing plantReduce harvesting of juvenile bream to maintain sustainable fish population.Provide local fisheries with the opportunity to increase their price point
$2mManage Cattle
FarmingReduce pressure of cattle farming and
use smart grazing management to allow vegetation of Flats to grow
$12m
Bankable
Grants/Subsidies
Resources.
BWS is setting up FIVE ways to support identified projects
SUPPORTING TEAM
Expertise on sustainable
water practices and
project finance supports
projects to become
bankable.
BWS PROCESS
Local WWF and external
teams can upload their
initial project ideas and
they can ask for support
from the Enabling team.
FINANCIER ADVISORY
PANEL
Group of external experts
which comes together 3-
4 times a year to assess
the high level business
plan of the projects,
based on a project pitch.
SEED FUND
The seed fund is used to
bring projects from an
idea to a stage in which
they can be presented to
investors.
CONNECTION TO
INVESTORS
Through BWS’s
relationships with
investors the right projects
can be brought to the right
investors
Bankable Project Process
DISCOVER STRUCTURE DEVELOP FUND
ADDED TO
INCUBATOR
DRAGONS
DEN
LOCAL OFFICE
BWS TEAM
WWF NETWORK
CONSULTANTS
© Victor Daggberg
IN-HOUSE WATER RISK AND
KNOWLEDGE EXPERTS
OFFICES IN OVER 100 COUNTRIES FIRST-HAND
KNOWLEDGE OF KEY LANDSCAPES
PARTNERSHIPS WITH GLOBAL BRANDS
EXISTING RELATIONSHIPS WITH REGULATORS AND
COMMITMENT TO BANKABLE PROJECTS
PROVEN SCIENCE AND CONSERVATION TRACK
RECORD
Summary
Bankable Projects are a tool to meet landscape and conservation outcomes
Bankable Water Solutions has been set to grow and enable bankable projects in WWF
Current grant funders are starting to require leverage and this trend will grow going forward
Bankable Projects will access funding that was previously unavailable
Bankable Projects should become the new normal in Impact Organisation ways of working
Bankable Water SolutionsFor more information, please contact:
Aaron Vermeulen // Freshwater Finance Lead
Dean Muruven // Global Freshwater Policy Manager
Marcel Dupuis // Finance Adviser
Keiron Brand // Bankable Initiatives Advisor
Bankable Projects website